IOC reports Rs3,388-crore Q1 net loss as under-recoveries mount
24 Jul 2010
State-run Indian Oil Corporation (IOC) has reported a net loss of Rs3,388.39 crore in April-June 2010-11 against a net profit of Rs3682.83 crore in the same quarter of the previous fiscal (2009-10).
IOC's gross turnover for the April-June 2010-11 quarter went up 22.72 per cent to Rs77,965 crore, against Rs63,530 crore in the similar quarter of the previous year, unaudited financial results of the company showed.
According to Indian Oil chairman B M Bansal, the under-recovery on account of non-realisation of market-related prices for petrol, diesel, PDS kerosene and LPG (domestic) for the quarter was Rs7,343 crore.
The Fortune 500 company reported revenue loss to the tune of Rs11,013.85 crore during the first quarter of the current financial year due to under-recoveries from selling fuel below cost. Of this, IOC recovered Rs3,671.26 crore from upstream firms such as Oil and Natural Gas Corporation, Gail India and Oil India.
IOC's total income, however, increased 19.98 per cent to Rs72,807.51 crore during the April-June 2010-11 quarter, from Rs60,683.97 crore in the quarter ended 30 June 2009.
A fall in crude prices in late 2009 also had caused heavy inventory loss as IOC had bought it when crude prices were ruling high.